Hewlett-Packard cuts 25,000 jobs

“The computer and printer maker Hewlett-Packard announced Monday that it would eliminate nearly 25,000 of its 320,000 jobs as part of its plan for digesting Electronic Data Systems, the computer services giant that H.P. acquired for $13.9 billion in August,” Ashlee Vance reports for The New York Times.

“Mark V. Hurd, H.P.’s chief executive, discussed the layoffs, which amount to 7.5 percent of the company’s combined work force, at a meeting with securities analysts at a hotel here, near the San Francisco airport,” Vance reports. “‘I think most of you that follow us know I am a big believer that having the most efficient cost structure directly relates to your ability to scale and grow,’ Mr. Hurd said at the meeting.”

“According to H.P., almost half of the job cuts will occur in the United States. The company, based in Palo Alto, Calif., expects the restructuring to result in annual cost reductions of nearly $1.8 billion. H.P. said it would record a $1.7 billion charge in the fourth quarter tied to the layoffs,” Vance reports.

“A number of analysts have expressed optimism around potential cost savings that can occur by eliminating overlap between the two companies in human resources, finance and other basic functions. Some of the expectations stem from the reputation has Mr. Hurd built both during his tenure at H.P. and in his previous job as chief executive of NCR,” Vance reports. “The EDS purchase can be seen as part of a multi-year program at H.P. to round out its major product lines in the hopes of matching I.B.M.”

Full article here.


  1. HP should have kept the Apple relationship going with the HP-badged iPod, then pressed Apple for a Mac-clone for sale to enterprise-only.

    HP’s possible push into Linux may spell them getting out of Win PCs and into services and printers alone – a long shot, but IBM did it with a purchase by Lenovo. Our company uses HP, but the margins must be very tight as the quality is not that good, yet we still keep buying them.

    “Typed on an HP transported into Parallels”

  2. @MacNScott

    HP acquired EDS. There is a lot of overlap in job functions, therefore layoffs. Nothing more, nothing less. It is just how these things go. For the people being layed off it sucks, but for the company it is a good situation.

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